Constellation Brands CEO Bill Newlands, who heads up the alcohol company with an approximate 36.1% stake in Canopy Growth, has resigned from Canopy’s board of directors, reports MJBizDaily.
According to a Nov. 29 regulatory filing, Newlands resigned on Nov. 24, just days after the abrupt exits of two senior executives was announced just last month, along with the news the company did not expect to be profitable this year.
But according to MJBiz, the CEO’s exit is not necessarily part of a sweep through the senior executives at the company. Rather, it’s believed to have been in the works for some time.
Constellation CFO and executive VP Garth Hankinson will replace Newlands.
“Garth (Hankinson) brings with him his extensive background managing financial and accounting divisions in a CPG environment, and his presence on the board will help expedite our path to profitability while supporting long-term shareholder value,” said a Canopy spokesperson in a statement.
Long road ahead
Since its first investment in Canopy Growth in 2018, Canopy has lost nearly CAD $4 billion. Its total investment in the Smiths Falls, Ontario-based company is about CAD $5 billion.